A dredging company launched with $15 million in state money must cease its work in the Oregon and Hatteras inlets after digging deeper and wider than permits allowed hundreds of times, the U.S. Army Corps of Engineers said Wednesday. EJE Dredging Service is led by an influential North Carolina Republican who is under scrutiny by a federal grand jury.

EJE Dredging was formed by Judson Whitehurst, a Greenville business owner, three months after state lawmakers provided the $15 million to Dare County for dredging. The following year, company documents showed Jordan Hennessy, a former legislative aide who helped convince lawmakers to provide funding for the dredging, working on behalf of EJE Dredging. He’s been the CEO for at least two years.

Hennessy has been named in two subpoenas linked to a federal criminal investigation for his work on another project funded by state lawmakers in 2020. Subpoenas issued over the past three months show a grand jury seeks information about Hennessy and one of his businesses as it investigates a domestic violence prevention program funded with $3.5 million also appropriated by state lawmakers.

Dare County is a hub for commercial and recreational boating, and has struggled for decades to keep navigational channels open. The Corps operates dredges, but its resources are stretched thin. The federal government, meanwhile, in 2003 decided against a plan to build jetties in the Oregon Inlet that would limit the shifting sands, according to the National Park Service. The $15 million from state lawmakers in 2018 appeared to provide a solution. Then-state Sen. Bill Cook, a Beaufort County Republican, persuaded lawmakers to include the money in the budget that year. Hennessy and Marion Warren, a former director of the state Administrative Office of the Courts, co-wrote the legislation that provided the money. The federal subpoenas also seek information about Warren. Hennessy could not be immediately reached on Wednesday.